OVERVIEW:
This Course requires creation of new legal entity in a specific Country and allows two or
more companies to collaborate and carry out a common activity requiring legal instruments
such as by-laws, articles of incorporation, and shareholder’s agreement.
This Course presents the Fundamentals of Oil and Gas Joint Venture Project
Finance, Techniques for Financing Incorporated Joint Venture and the parameters
that influence the financial aspects of Oil and Gas Joint Venture Projects in
developing Countries.
This course is intended to be very interactive using case studies such as NLNG
Model Operations, Petroleum Development Oman (PDO), Pemex /Schlumberger,
Strategic Alliance Financing, etc.
The course also addresses the Rationale for Capital and Operational Project
Financing, and examine project risk analysis, risk mitigation strategies, financing
options, commercial and legal frameworks.
COURSE CONTENT:
Overview of the application of Incorporated Joint Ventures Principles in the
Nigerian Upstream in Focus.
Background to Incorporated Joint Venture Proposals and Joint Venture Contracts
involving foreign owned companies in Nigeria.
Critical Success Factors for the IJV (Incorporated Joint Venture) to Succeed in
Nigeria, Alternative Funding Arrangement for Exploration and Production.
Interpretation of terms detailed Comparison between existing JV and IJV.
IJV Pros and Cons, Identifying and exploring key aspects of financing for oil and
gas joint venture capital project, potential sources of funding as well as basic
financial metrics. Explaining clearly and in detail, project financing techniques and
structures typically used in oil and gas joint venture.
Transition from JOA to SHA.
Dividend Policy and Staff secondment Policies and culture of the new organization.
Providing Oil and Gas Joint Venture Project Financing toolkit incorporating project
risk appraisal and mitigation, project qualitative analysis and debt sizing structures,
project finance loan documentation.
Understanding how each JV is incorporated as a separate entity.
Analyzing why and when sponsors use project financing techniques and method of
incorporating appropriate financing into decision making pertaining to petroleum
capital projects
Analyzing and interpreting how solving funding problem and creates self sufficient
entity. Debt and equity are balanced within project financing structures using case
studies, group exercises and interactive group discussion to create transparency
across all JV partners.